Bitcoin has maintained its position above $77,000, following a notable surge to its highest level since early February. According to CoinGlass data, the cryptocurrency is poised for its best monthly performance in a year, with a 13.6% increase in April. This rebound comes after a prolonged period of decline, with crypto markets experiencing their longest losing streak since 2018. The improvement in the broader macroeconomic backdrop, including a strong recovery in U.S.
equities, has contributed to this turnaround. Additionally, the supply of Tether's USDT stablecoin has increased to nearly $150 billion, with a $5 billion growth over the past two weeks, indicating a potential influx of capital into the crypto market. Analysts view stablecoin growth as a positive signal for asset prices, as it provides liquidity for traders to purchase digital assets.
However, geopolitical tensions and uncertainty surrounding the Iran war continue to affect oil prices. Despite this, markets appear to be looking beyond these concerns, with strong corporate earnings and resilient equity markets offsetting worries about higher energy costs and geopolitical risks. The upcoming April Fed meeting will be a crucial test for the current rally, and the direction of bitcoin will depend on the drivers of the move and the participants involved.